The rupee was trading weak by 17 paise at 62.05 against the dollar at 3.00 p.m. local time due to mild dollar demand from banks and importers.
The rupee shed 27 paise to 62.15 per dollar in the opening trade against the previous close of 61.88 on the back of weakness in the domestic equity market.
The domestic unit had weakened yesterday as the International Monetary Fund sharply cut its economic growth forecast for India and due to a rally in the American currency following the naming of Janet Yellen as the next head of the US Federal Reserve.
However, India's trade deficit narrowed to a two-and-a-half-year low in September, which stood at $6.7 billion compared with $10.9 billion in August amid a sharp fall in the inward shipments of gold and silver, which helped support the domestic unit.
“The rupee is expected to track global cues. The rupee is expected to move in the levels of 61.60 to 62.40 a dollar in the rest of the week,” said said S. Srinivasaraghavan, Head of Treasury at Dhanlaxmi Bank.
Call rates, G-Secs
The 7.16 per cent government security, which matures in 2023, opened a tad lower at Rs 91.5 against the previous close of Rs 91.57. The yields hardened a tad to 8.46 per cent from 8.45 per cent. Bond yields and prices move in opposite directions.
The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term fund requirements, opened higher at 9.10 per cent against the previous close of 9 per cent.
